New York State Low-Income Housing Tax Credit Program (SLIHC)

Type

Capital

Source

State

Procurement Agency

New York State Homes and Community Renewal (HCR)

Total Annual Award

In 2010, New York State awarded $3,345,000 to six projects, with an average award of $556,000.  Of those, only one project was a supportive housing project, totalling $550,000 in state tax credits.

Eligible Populations

Low-income individuals and families. There are scoring incentives for projects in which 15% or more of all tenants have special needs such as homelessness, mental illness, substance abuse, domestic violence and physical disabilities.

Eligible Projects

At least 40% of units for 90% area median income (AMI) developed by for-profit and nonprofit developers, individuals, limited liability corporations, limited partnerships and corporations.

Funding Award Details

SLIHC provides a state tax reduction for developers who acquire, build or rehabilitate low-income rental housing. Developers sell these 10-year tax credits to investors for capital to put toward construction. Since 2005, the State has allocated over $20 million to 37 housing projects.

Rate Details

Typically, developers receive $0.45 to $0.50 for every $1 of tax credits that they sell. Tax credits have a 10-year lifecycle. $1 million in tax credits thus equals $4.5 million in state income tax savings.

Term of Service/Length of Grant

The tax credits may be used by the investor annually for the initial 10 years of the project. The property must remain in service for 15 years, after which the corporation formed may seek refinancing and/or transfer the project to the nonprofit partner/developer.

Limitations

Can't be used with 4% As of Right tax credits.

Network Notes

NYSLIHC are awarded competitively as part of the HCR Unified Funding Round. Applications are rated based on a number of factors such as the extent of community impact and revitalization, the use of other additional development funding sources and developer experience/history. More significantly, HCR awards extra points for special needs units. Although the percent of median income for eligibility remains at 90%, due to the need for housing for the lowest-income population, the state has been giving preference to projects with populations farther below 90% of median income. Tax credits enhance a supportive housing project's long-term viability since they establish both equity and partnerships with for-profit developers. Federal LIHTC funding is often used in conjunction with SLIHC.

State tax credits were designed to be used to fund affordable housing at a higher income band (less than 90% AMI) than federal low income housing tax credits (less than 60%). On these terms. they should be viewed as funding for affordable units in a mixed development, not directly for supportive housing units, which typically serve below 30% AMI. In the 2010 round of funding, HCR took the position that SLIHC could be used as gap filler. However, the Network's analysis of the 2009 and 2010 awards showed that SLIHC was not a major factor in supportive housing development. Two supportive-housing-only projects were funded with SLIHC in 2009 and one in 2010.

For More Information

To read the grant application, visit here.

Contact

	Capital District Regional Office Arnon Adler Capital Region contact person Hampton Plaza 38-40 State St., 2nd Floor Albany, NY 12207 Phone: 518-486-5012 Counties Served: Albany, Clinton, Columbia, Delaware, Dutchess, Essex, Fulton, Greene, Hamilton, Montgomery, Orange, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Sullivan, Ulster, Warren, and Washington.		New York City Regional Office Greg Watson Regional Director 25 Beaver St. New York, New York 10004 Phone: 212-480-7644 Fax: 212-480-7164 Counties Served: Bronx, Kings, New York, Queens, Richmond, Nassau, Suffolk, Rockland, and Westchester.
	Buffalo Regional Office Thomas Van Nortwick Regional Director Electric Tower, Suite 105 535 Washington Street Buffalo, NY 14203 Phone: 716-847-7955 Fax: 716-847-3244 Counties Served: Allegany, Cattaraugus, Chautauqua, Chemung, Erie, Genesee, Livingston, Monroe, Niagara, Ontario, Orleans, Schuyler, Seneca, Steuben, Wayne, Wyoming, and Yates.		Syracuse Regional Office Daniel Buyer Regional Director 620 Erie Blvd. West, Suite 312 Syracuse, NY 13204 Phone: 315-478-7179 Fax: 315-478-7188 Counties Served: Broome, Cayuga, Chenango, Cortland, Franklin, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, St. Lawrence, Tioga, and Tompkins.

 

Last updated: 09/15/2011

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